5 Works

Financial Constraint and Productivity: Evidence from Canadian SMEs

Shutao Cao & Danny Leung
The degree to which financial constraint is binding is often not directly observable in commonly used business data sets (e.g., Compustat). In this paper, we measure and estimate the likelihood of a firm being constrained by external financing using a data set of small- and medium-sized Canadian firms. Our measure separates the need for financing from the degree of constraint, conditional on the need for financing. We find that firm size, the current-debt-to-asset ratio and...

Real-Financial Linkages in the Canadian Economy: An Input-Output Approach

Danny Leung & Oana Secrieru
The purpose of this paper is twofold. First, we provide a detailed social accounting matrix (SAM), which incorporates the income and financial flows into the standard input-output matrix, for the Canadian economy for 2004. Second, we use the SAM to assess the strength of the real-financial linkages by calculating and comparing real SAM multipliers and financial social accounting matrix (FSAM) multipliers. For FSAM multipliers, financial flows are endogenous, whereas for real SAM multipliers they are...

The Fisher BCPI: The Bank of Canada’s New Commodity Price Index

Ilan Kolet & Ryan Macdonald
The prices of commodities produced in Canada have important implications for the performance of the Canadian economy and the conduct of monetary policy. The authors explain an important change to the methodology used to construct the Bank of Canada commodity price index (BCPI). Since its inception, the BCPI has been a fixed-weight index of commodity prices, with weights that were updated roughly once a decade. Such indexes are subject to bias, because output shares change...

Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms

Audra Bowlus, Émilien Gouin-Bonenfant, Huju Liu, Lance Lochner & Youngmin Park
We use four decades of Canadian matched employer-employee data to explore how inequality and the dynamics of individual earnings have evolved over time in Canada. We also examine how the earnings growth of individuals is related to the growth of their employers.

Firm-Specific Shocks and Aggregate Fluctuations

Leonid Karasik, Danny Leung & Ben Tomlin
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms. Using data on Canadian firms, this paper examines the contribution of large firms to industry-level fluctuations in gross output, investment and employment in the manufacturing sector. The data suggest that shocks...

Registration Year

  • 2021
    5

Resource Types

  • Text
    5

Affiliations

  • Bank of Canada
    5
  • Statistics Canada
    5
  • Columbia University
    1
  • Western University
    1
  • Western University
    1